EPFO to credit FY26 PF interest by July 15 as new IT system speeds up services

New Delhi: Retirement fund body Employees' Provident Fund Organisation (EPFO) has begun processing the annual interest on provident fund (PF) deposits for the financial year 2025-26, with members expected to see the credited amount in their passbooks by July 15, Union Labour and Employment Minister Mansukh Mandaviya announced on Wednesday.

The government had approved an interest rate of 8.25 per cent on EPF deposits for FY26 last month. According to the minister, interest amounting to more than Rs 1.44 lakh crore will be credited to around 34 crore member accounts after automated processing and verification by EPFO field offices.

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The faster credit of interest has been made possible with the rollout of EPFO's Centralised IT-Enabled Services (CITES 2.01), which replaces the earlier decentralised system of maintaining separate databases at regional offices with a unified national database.

Mandaviya said that under the previous system, EPF interest was typically credited only in October or November after government approval. With the new centralised platform, the process has been significantly accelerated.

The upgraded system also brings several changes aimed at making EPFO services more convenient for subscribers. Members can now access their PF accounts, balances, claim status, pensionable service records and other details from anywhere in the country, without being dependent on a specific regional office.

Claim settlements are also expected to become faster as they will now be processed through the centralised architecture and credited electronically to members' bank accounts.

Another significant reform relates to final PF settlements. Earlier, interest was calculated only up to the last day of the month preceding settlement. Under the revised system, subscribers will now earn interest up to the actual date on which payment is authorised, ensuring they receive interest for the entire eligible period.

The EPFO has also simplified the partial withdrawal process by reducing 13 withdrawal categories to just three—essential needs, housing needs and special circumstances. In addition, members will now be allowed to withdraw up to 75 per cent of their total PF balance, subject to applicable rules.

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For employees changing jobs, Aadhaar-linked Universal Account Number (UAN)-based PF accounts will now be transferred automatically without requiring a separate transfer application.

The centralised pension payment system has also been expanded. Pensioners whose claims are processed at any EPFO regional office will now be able to receive their pension through any bank account across the country, removing the earlier restriction of receiving pension only through the bank branch linked to their Pension Payment Order (PPO).

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